Small business ownership and entrepreneurship are two company terms often considered interchangeable. Interestingly, there’s, in fact, a big difference between both of these. In summary, small businesses offer little growth and few chances for its owners and employees as it isn’t designed for expansion. And on the flip side, entrepreneurship consistently has expansion potential, and with fast development comes more income and more wealth. More specifically, there are three things which differentiate a small business from an entrepreneurial venture, plus they’re innovation, risk and wealth creation. So far as innovation is concerned, it is the backbone of entrepreneurship, providing the enterprise capacities and resources to make wealth.
Entrepreneurs are believed to be more innovative, possibly even addicted to it, than small businesses owners who’re usually settled with advertising the usual stuff generated from the kitchen, home office or garage. Entrepreneurship involves more risks than small business ownership. Entrepreneurs take up risks which are unusually high for most or even all small business owners. High risks fuel the fire of entrepreneurship, and once along with opportunities of significant gains, entrepreneurs take the road less traveled. Increasingly, as more entrepreneurs trail the same small business idea, the risks become low, chances of substantial gains decrease, and entrepreneurs could seek out another venture that introduces opportunities for huge and fast wealth development.
Wealth creation in entrepreneurship is fast and substantial. This difference with small business is probably the most apparent. The wealth production ability of a small company remains small and limited, if not entirely slow. Entrepreneurial ventures, with the substantial dangers involved, offers many possibilities to accumulate massive prosperity and at great speeds. Income generated from entrepreneurship is substantially larger than what may be produced from small business or what is needed to replace employment salary. Unlike a small business that’s usually modeled after thoroughly tested home based companies, entrepreneurship is all about new; new products, processes, markets, and organizations.
Entrepreneurs are known for locating underserved niche markets, no matter how unprofitable they might seem. Company owners frequently ignore markets under the poverty threshold, but to entrepreneurs, they’re great sources of substantial wealth. By combining innovation, specialization and collaborative effort, the enterprise becomes empowered to produce top-notch products made affordable and available to markets at the bottom of the pyramid. Innovation too is sufficient to create new demand. From this standpoint, there’s very little need for entrepreneurs to invest a lot in advertising. On the flip side, it isn’t surprising for products of entrepreneurial companies to gain wide recognition because their quality and value are enough for clients to get the word out to the rest of the markets thus providing the enterprise free yet strong advertising.